New Delhi: Realty firm Parsvnath Developers Ltd today said it has tied up with diversified conglomerate ITC for managing hotel properties, which it would develop at a cost of Rs2,500 crore in the next three to five years.
As per the agreement, ITC will manage 50 hotels comprising 4,100 rooms across the country for Parsvnath Hotels Ltd, a subsidiary of Parsvnath Developers, the company said.
The management will be done by ITC’s Fortune Park Hotels, while Parsvnath Hotels would own and develop these 50 hotels.
Parsvnath Hotels would invest about Rs2,500 crore to develop the hotel projects, of which 20 would be five stars, 20 four stars and 10 three stars and budget hotels.
“At present, we are developing 17 hotels, of which seven would be managed by ITC. The remaining 10 would be managed by other hotel chains,” Parsvnath Developers Chairman Pradeep Jain said.
The seven hotels are located at Ranchi, Lucknow, Indore, Jodhpur, Ujjain, Chandigarh and Dehradun and are expected to be operational by 2010, he added.
“Managing hotels requires expertise and we think Fortune Park Hotels is uniquely positioned to manage the projects of different sizes, locations and segments through its different brand extension,” he said.
The hotels would run under the brand name of Fortune Select, Fortune Park, Fortune Inn and Fortune Faith. Fortune Select Hotels would have atleast 100 rooms, Fortune Park would have 75 or more rooms and other brands would have at least 50 rooms and more.
Parsvnath plans to develop 75-100 hotels in tier II, tier III and all the major cities across the country, he added.
“India is emerging as a preferred destination for tourists on the global map. Seeing this tremendous opportunity, we are venturing into the hospitality sector in a big way,” Jain said.
Parsvnath, which recently announced its plan to foray into retail sector, is looking at locations like Delhi, Pune, Mumbai, Kolkata, Chennai, Udaipur, Jaipur, Navi Mumbai, Agra, Bangalore, Bhopal, Raipur, Jalandhar, Ludhiana, Vadodara, Manesar, Surat, Aurangabad, Gandhinagar, Nagpur, Jaisalmer and Noida to develop hotels in near future.
Parsvnath Developers, which has presence in 48 cities and 17 states, currently has more than 100 projects with a land bank of 209 million sq ft.
Earlier, it had announced an investment of Rs60,000 crore in the next five years in diversified areas like SEZs, airports, expressways and retails business.
The company has posted a net profit of Rs113 crore on a turnover of Rs497 crore for the third quarter ended December 2007.
ITC Welcomgroup manages more than 80 hotels under different brands in India. The company has brands like ITC Luxury Collection, Sheraton, Welcomhotel, Fortune Hotels and Welcome Heritage under its umbrella.